Education loan npa sold to arc
Kumar
(Querist) 19 February 2016
This query is : Resolved
Hi All,
My sister got an education loan of Rs.2.3 lacs in the year 2008-2012. She has paid 70k to the bank during 2014-2015 and got an interest subsidy approved by Ministry of HRD. Then the bank waived off interest. Later the bank sold the loan as NPA to an Asset Construction Company for Rs.1.4lacs due to irregular payment. Now the ARC is demanding the whole amount of Rs.2.3 without considering the amount paid to the bank. Also they are not ready to provide any legal document(like agreement) and NOC immediately (they are saying can provide NOC only after 20 days) even if we are ready to initiate the payment.Please clarify
1)Can the ARC levy interest on the loan amount even if it has been given interest waiver
2)Due to financial problems we can arrange only Rs.1.4 lacs is it fine if we pay this amount
3)What are the legal documents we need to get from the ARC before starting to make payments
Santosh Goswami,Advocate
(Expert) 19 February 2016
I should let you know that ARC has no legal standing to ask you for the payment of loan. If you want to settle it, bargain hard. It all depends on bargaining. There is no law regarding the same and I don't trust your information that your loan has been sold in 1.4 lakhs. No one can levy interest if already waived off. And ask it whether it is giving you the settlement letter, NOC, ETC at the time of payment. Not to succumb under pressure.
9555462995
P. Venu
(Expert) 20 February 2016
Has the Bank informed you of the npa being sold to the said company?
Kumar
(Querist) 20 February 2016
Nope we were paying 5000 every month till last September(though not regularly) on the loan account provided by the bank. When tried paying for October the loan account was not available online. Then later in the month of November ARC called us and said it has been sold to them. Then when we went to the bank they said it's been sold. But there is no mail or letter communication from the bank or ARC. Can we file a RTI to the bank
Kumar
(Querist) 20 February 2016
No we were paying 5000 every month till last September(though not regularly) on the loan account provided by the bank. When tried paying for October the loan account was not available online. Then later in the month of November ARC called us and said it has been sold to them. Then when we went to the bank they said it's been sold. But there is no mail or letter communication from the bank or ARC. Can we file a RTI to the bank
Rajendra K Goyal
(Expert) 20 February 2016
1. Whether loan interest was waived by letter from Bank, whether some conditions imposed? If it was waived as settlement and the settlement was not obeyed by you, ARC / Bank can levy interest. If interest waiver was unconditional (not possible), interest can not be applied later.
2. Only ARC or Bank can settle, negotiate hard.
3. Loan clearance letter is enough.
Kumar
(Querist) 20 February 2016
No letter was sent from bank for interest waiver. But got a message from bank that the interest has waived off to 0%. Is it enough if we pay the outstading amount as shown in CIBIL report
Rajendra K Goyal
(Expert) 20 February 2016
How the message was received, through letter or mentioned in some account statement?
As per RBI directives in NPA account Bank can not apply periodical interest till it is actually realized. It never means Bank would not claim interest or rate of interest has come to zero / waived.
CIBIL report does not reflect actual amount payable, as periodical interest, from the date of NPA to date of report is not included in this amount .
Kumar
(Querist) 20 February 2016
How to proceed further on this. Can we come RTI against the bank since the account was set to npa without sending formal communication to us( might we have missed the letter). Also ask ARC to provide a copy of NOC sent to them by bank(they are just saying that they will provide the document after closure no written communication from them that the account was sold to them)
Kumar
(Querist) 20 February 2016
Please clarify if the ARC can apply interest on the loan account sold as NPA to them
Rajendra K Goyal
(Expert) 21 February 2016
You have preferred not to reply information sought.
However your questions are replied as under:
How to proceed further on this
Ans: Arrive at settlement with the ARC / Bank.
Can we come RTI against the bank since the account was set to npa without sending formal communication to us( might we have missed the letter).
Ans: You can send RTI if it is Public sector Bank. It was your duty to repay the loan. Sending notice to identify account as NPA is not necessary, it is done in accordance with the RBI directives.
Also ask ARC to provide a copy of NOC sent to them by bank(they are just saying that they will provide the document after closure no written communication from them that the account was sold to them)
Ans: If you settle the account, they would give you clearance.
Rajendra K Goyal
(Expert) 21 February 2016
ARC can take interest on the account sold to them.
However, sometime they settle the account without or with less interest. All depend on case to case.
